Do you know what Overt, Disparate Treatment and Disparate Impact is?
Prepared by: Community Development Department, City Of Decatur, Alabama. For more information on Fair Housing or on how to file a complaint, contact Fair Housing Center of Northern Alabama, Birmingham, AL, at 866-740-1040 or www.fhcna.com. Sources: Texas Fair Housing Facts, 2007.
Housing Discrimination is “ODD!”
In Mortgage Lending:
Overt, Disparate Treatment and Disparate Impact
any of the following actions based on race, religion,
In the Sale and Rental of Housing: No one may take color, sex, national origin, disability or familial status:
Overt discrimination is defined as any housing
• Refuse to make a mortgage loan
discrimination which is intentionally inflicted.
• Refuse to provide information regarding loans
Disparate Treatment is discrimination which occurs
What is Prohibited?
when members of a protected class are treated in a
No one may take any of the following actions
different and less favorable manner than members of
based on race, religion, color, sex, national origin,
a majority group. The intention to discrimination is not
disability or familial status:
communicated or expressed, but can be seen from the differences in treatment. Disparate Impact is discrimination which occurs when treatment, although applied equally, has an adverse effect on members of a protected class in comparison to members of a majority group. Basically, the activity is fair in form, but discriminatory in practice.
• Impose different terms or conditions on a
loan, such as different interest rates, points,
• Discriminate in appraising property • Refuse to purchase a loan
• Refuse to rent or sell housing
• Set different terms of conditions for
• Refuse to negotiate for housing
• Make housing unavailable • Deny a dwelling • Set different terms, conditions or privileges
for sale or rental of a dwelling
• Provide different housing services or facilities • Falsely deny that housing is available for
inspection, sale or rental
• For profit, persuade owners to sell or
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of
purchasing a loan